Neo Solar Power sees record gross margin from solar cell production
Nuying Huang, Taipei; Esther Lam
Source: DIGITIMES 13 November 2007
http://www.digitimes.com/bits_chips/a20071113PD204.html
Besides posting quarterly sales grew by seven straight quarters, Neo Solar Power is attracting attention as its gross margin for in-house solar cell production has outgrown the industry average. Having operations started in the first quarter of 2006, Neo Solar said its quarterly sales hit a record high for the past seven consecutive quarters. The solar cell maker recorded sales of NT$1.03 billion (US$31.8 million) in the third quarter of 2007, representing a sequential growth of 15.6%. Sales through October were NT$2.75 billion.
As of October, the company’s gross margin averaged 16.4%, with the gross margin for its in-house solar cells being at about 20%. As Neo Solar already has sufficient material for production in 2008, the company projects further enhancement in profitability.
Reviewing profitability status among leading solar cell makers in Taiwan, most saw their gross margin dampened by high material costs, as evident in the decline in the gross margins of E-ton Solar Tech and Motech Industries. E-ton saw its gross margin drop below 12% and Motech only recorded a gross margin of 17.5% in the third quarter. Neo Solar guides that capacity for late 2008 will be 210 peak megawatt (MWp), following the operation of four new production lines at a new plant.